Subgoal GDP growth pulls down PSEi

MANILA, Philippines — Slower-than-expected economic growth disappointed investors on Thursday, causing the benchmark index to plunge below the 6,600 level.

The Philippine Stock Exchange Index (PSEi) shed 1.75 percent, or 116.72 points, to 6,542.46 by the end of the session.

The broader All Shares Index likewise declined by one percent, or 35.02 points, to 3,481.55

A total of 490.88 million shares valued at P6.73 billion changed hands, stock exchange data showed

Gross domestic product (GDP) growth was at 5.7 percent in the first quarter of the year, slower than the government’s target range of 6 to 7 percent.

READ: Philippine economy grew 5.7% in Q1

“This raised worries over the country’s economy amid the lingering headwinds, including inflation and elevated interest rates,” said Mikhail Plopenio, researcher at Philstocks Financial Inc.

Apart from anxiety over the country’s economy, declines in Sy family-led index heavyweights SM Investments Corp. (SMIC) and SM Prime Holdings Inc. likewise pulled down the local bourse.

SMIC was the top-traded stock as it slid by 4.78 percent to P877 each.

READ: Asian shares mixed after Wall Street’s lull stretches to a second day

It was followed by Ayala Land Inc., up 0.18 percent to P27.85, BDO Unibank Inc., down 3.01 percent to P141.80; ACEN Corp., which surged by 8.61 percent to P4.54; and International Container Terminal Services Inc., down 1.39 percent to P354.

SM Prime also declined by 3.23 percent to P26.95; Universal Robina Corp., down 1.63 percent to P108.70; Ayala Corp., down 0.34 percent to P582.50; Wilcon Depot Inc., up 2.86 percent to P18; and Jollibee Foods Corp., down 0.9 percent to P219.80.

There were 95 advancers against 87 losers, while 43 companies were unchanged at closing, stock exchange data also showed. —MEG J. ADONIS